If the price of good X rises and the demand for good Y also rises, then both goods are considered **substitutes**. This relationship indicates that consumers are likely switching their consumption from good X to good Y as the price of good X increases. When the price of one good goes up, people often look for alternative products that can fulfill a similar need, leading to an increased demand for the substitute good.

In economic terms, this is reflected in the cross-price elasticity of demand, which is positive for substitute goods. Therefore, an increase in the price of good X results in an increase in the demand for good Y, confirming their status as substitutes.

Question

If the price of good X rises and the demand for good Y also rises, then both goods are considered **substitutes**. This relationship indicates that consumers are likely switching their consumption from good X to good Y as the price of good X increases. When the price of one good goes up, people often look for alternative products that can fulfill a similar need, leading to an increased demand for the substitute good.

In economic terms, this is reflected in the cross-price elasticity of demand, which is positive for substitute goods. Therefore, an increase in the price of good X results in an increase in the demand for good Y, confirming their status as substitutes.

Knowee AI · Accepted Answer

If the price of good X rises and the demand for good Y also rises, then both goods are considered **substitutes**. This relationship indicates that consumers are likely switching their consumption from good X to good Y as the price of good X increases. When the price of one good goes up, people often look for alternative products that can fulfill a similar need, leading to an increased demand for the substitute good.

In economic terms, this is reflected in the cross-price elasticity of demand, which is positive for substitute goods. Therefore, an increase in the price of good X results in an increase in the demand for good Y, confirming their status as substitutes.

If the price of X good rises then the demand of Y good also rises then both goodsare__

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If the price of X good rises then the demand of Y good also rises then both goods are __.

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